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At the beginning of July, Luis Cuende, co-founder of Aragon, said that while Ethereum’s value will remain around $260 in the short-term, in the long run, it could hit $1,000. When, though, is this likely to take place?
At present, ether is trading at $307, according to CoinMarketCap. When you compare it to bitcoin’s value, it pales in comparison. Granted, Bitcoin has been around for nine years and Ethereum is still scratching the surface of its potential, having only been around for two years.
During 2015 and the beginning of 2016, ether’s price didn’t rise any higher than $2.50. It was only in February 2016 that its value started rising, climbing up to over $14 in March. It then dropped in April before rallying back in May before falling in the middle of June after nearing the $20 mark. For the remainder of 2016 and the start of 2017 ether’s value continued in the low-teens. Fast-forward to March 2017 and the tables appear to be turning for the second-placed digital currency.
Yet, even though it has made significant headway in 2017, ether’s price seems to have reached a point where it is stuck floating around $300.
Despite this, however, Cuende is one individual who is confident in where Ethereum is heading. So much so, that he believes it will hit the $1,000 mark by 2019. Ethereum and initial coin offerings (ICO), with many of them tied to the Ethereum network, are growing at a fast rate. As a result, with many companies investing in the Ethereum network its value is increasing.
According to financial research firm Autonomous Next, token sales have raised $3.04 billion, so far, this year. Earlier this month, it was reported that Overstock’s majority-owned subsidiary tZero plans to raise up to $500 million in an ICO, in what will be the largest ever. The token sale is expected to launch on the 15 November and is scheduled to last until the 31 December.
The five largest ICOs to date include: Status, June 2017, with $95 million; the DAO, in May 2016, with $152 million; Bancor, June 2017, with $153 million; Tezos, July 2017, with $232 million; and Filecoin, September 2017, with $262 million.
Of course, the possibility of ether reaching $1,000 by 2019 could be hampered. Several global authorities have already voiced their concerns about the risks associated with ICOs. In the summer, the U.S. Securities and Exchange Commission (SEC) issued an investor warning about them. In September, Chinese authorities banned them outright while Slovenia’s financial watchdog issued a warning earlier this month highlighting the risks linked to them.
As a consequence of China’s ban, it produced a significant impact on the Ethereum network, which saw its value drop below $200 on the 15th September.
Regardless of these setbacks, however, Cuende believes in the potential of Ethereum and where it’s heading.
“I thought it was expensive one year ago when it was at $13, but today when I see the possibilities created by the technology I think it’s cheap. I believe Ethereum will be worth $1,000 in a couple of years.”
Image: Wikimedia (Creative Commons 3.0)